Saving GM and Chrysler Was Necessary Says Bill Ford Jr.

Ford's executive chairman Bill Ford Jr. mentioned to CNBC TV: “It would have been so catastrophic to have a supply-base meltdown because it would have brought down all the auto manufacturers and frankly some other industries as well,” in an apparent attempt to justify the bailout funds that General Motors and Chrysler received from the U.S. government. The main point being that the entire U.S. automotive industry, from the car factory workers to the long chain of car parts suppliers, needed and correctly received the financial aid.

The issue of whether national automotive companies should be using taxpayer money is one that should be close to Malaysians' hearts; After all, our very own Proton has been doing so for so long. Sure, Malaysian taxpayer money is used to fund other non-automotive Malaysian companies, too. But the key difference lies in Proton's lack of competitiveness. Compared against a globally competitive company such as Volkswagen Group, Proton's deficiencies are glaring, most notably in the quality of Proton cars. Which further baffles since Proton insists on fighting alone, rejecting offers from both GM and Volkswagen Group for a tie-up. In today's cut-throat market, that could be suicide.

The Americans are known for standing up after falling down, for their innovation and business-mindedness. We can be sure they will return with better, competitive cars. But will Proton still be the same by then? Or will Proton finally produce cars that are desirable? Time will tell.